Added Jun 18, 2026Completed Mar 20, 2022
Company
Gulf Turbine Services
Client
NRG Energy
Source
MANUAL
Contract Type
LUMP SUM
Market Segment
STEAM_OVERHAUL
Public/Private
PRIVATE
Project Manager
Ray Daniels
Estimator
Phil Carter
Superintendent
Marcus Hill
Location
Jewett, TX
Margin Analysis
Original Margin
11.0%
$451,000
Revised Margin
7.0%
$331,000
Final Margin
-0.9%
$-40,365
Margin Fade (Bid)
-11.9%
CO Impact
$-120,000
Margin Fade (Revised)
-7.9%
Where They Land
Final Margin-0.9%
Break Even
-0.9%+24.4%
Gain / Fade-7.9%
As Predicted
-7.9%+2.0%
This project
Other projects
Zero reference
Revenue & Cost Summary
| Stage | Revenue | Cost | Profit | Margin |
|---|---|---|---|---|
| Original | $4,100,000 | $3,649,000 | $451,000 | 11.0% |
| Revised | $4,700,000 | $4,369,000 | $331,000 | 7.0% |
| Final | $4,700,000 | $4,740,365 | $-40,365 | -0.9% |
Cost Category Variance
| Category | Original | Revised | Final | Variance $ | Over/Under % |
|---|---|---|---|---|---|
| Labor | $1,416,625 | $1,620,199 | $1,847,027 | +$226,828 | +14.0% |
| Material | $963,243 | $1,334,779 | $1,361,475 | +$26,696 | +2.0% |
| Subcontractor | $991,747 | $984,208 | $997,914 | +$13,706 | +1.4% |
| Equipment | $258,818 | $436,895 | $473,594 | +$36,699 | +8.4% |
| Other | $109,470 | $131,070 | $117,963 | $-13,107 | -10.0% |
Labor Productivity
Original Rate
$79/hr
Revised Rate
$77/hr
Final Rate
$60/hr
Hours Variance
12,852
Rate Variance $
$-584,904
Volume Variance $
$1,015,306
Lessons Learned
Steam majors are our hardest fade. The LP last-stage blades found more erosion than scoped. We under-price steam labor — it needs a different productivity factor than GT.